Figure 1
In Figure 1,the point A2 is half way between the origin and the quantity intercept of the demand curve.The price elasticity at point "1" is
A) 0
B) between -$\infty$and -1
C) -1
D) between -1 and 0

Question

Figure 1 
 In Figure 1,the point A2 is half way between the origin and the quantity intercept of the demand curve.The price elasticity at point "1" is
A) 0 
B) between -$\infty$and -1 
C) -1 
D) between -1 and 0

Quizplus · Accepted Answer

At point "1", the demand curve is relatively elastic, meaning the percentage change in quantity demanded is greater than the percentage change in price. This suggests a price elasticity greater than -1. However, since point A2 is halfway between the origin (where the price is zero) and the quantity intercept of the demand curve, the demand becomes increasingly inelastic as we move upwards along the curve. This suggests a price elasticity closer to zero at point "1". Therefore, the best choice is B, which is between -∞ and -1.

Figure 1 in Figure 1,the Point A2 Is ∞\infty∞

Figure 1
in Figure 1,the Point A2 Is $\infty$